Editorial Magazine 2017/2

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HOW TO BECOME MARKET LEADER BY MEANS OF
“TECHNOLOGICAL JUMPS”

In the race for industry leadership and on occasion of the very struggle for survival, investment and technological choices place a decisive role in determining a company’s future.

It is not mere chance that the leading companies are the ones which are at the forefront in terms of technology.

But while it is true to say that investments generate profits, it is also true that it is profit which allow to invest: which is why this can be a critical issue for the small or medium-sized business which is in a position of stalemate, in a tunnel from which it appears to be impossible to emerge for lack of the financial resources necessary to initiate investments-financial return cycle described.

Even if we leave it to economists to formulate grand theories, we can still say that there is a way out, and one which does not take a telescope to see: in fact, it is often very simple. Investing in technology does not always mean having vast amounts of capital at hand but can sometimes mean simply changing a machine at the right moment, before it has fully depreciated and replacing it with a more technologically advanced model : in this way the company will always have its machine park constantly updated, instead of fluctuating between periods of high technology (at the moment of buying new machinery) and of being completely behind the times in comparison with competitors 10 or 15 years after purchase.

A gradual continual replacement at appropriate times also leads to a reduction in the costs of repairing breakages and general maintenance: in addition, certain costs are in fact borne by the suppliers within the guaranteed period. Another consideration which should not be underestimated is the possibility of taking advantage of easy term financing such as leasing, factoring and other forms.

On occasions it can also be advantageous for tax purposes as well as for technological reasons: and what is more, if the company is technically up-to-date, with the passing of time it increases in value instead of depreciating. The two fundamentals points however, are the following: in today’s highly technological climate, a company which is left behind will find it difficult to catch up, without making enormous investments: and a company which is left behind will find it even more difficult to make new investments in the future.

The large European and international groups seem to have learnt this rule very well, which is why we are seeing the continual technological development of these companies, the commercial battle will extend beyond regional boundaries and will be even harder than today in view of the mathematical increase in the number of possible competitors in a larger market. Who would want to go into battle carrying only a sword against an opponent armed with the most sophisticated weaponry? It is, as ever, a matter of choices and to make the right choices you also need to be up-to-date.

The 10th international Congress Aluminium Two Thousand (together with METEF exhibition in Verona in June) is also intended to be one of the few opportunities to achieve the same goal: to supply new information which is not only useful for the cultural background but it is also necessary for helping to make good choices and to invest in the right technology. 

 

 

Truly yours,
Walter Dalla Barba,
Editor and Chairman of the 10th Aluminium Two Thousand Congress, Verona 2017

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